Class 12 Economics – Rural Development (MCQ Mock Test)

Test Your Understanding of India’s Rural Economy with Our MCQ Mock Test!

How well do you understand the backbone of India’s economy — the rural sector? Strengthen your concepts with this MCQ-based mock test on Rural Development, designed as per the latest Class 12 Economics syllabus (2025–26). This test covers all essential topics — the meaning and importance of rural development, agricultural credit, role of cooperatives, microfinance, self-help groups (SHGs), and the importance of infrastructure in rural areas.

Each question is carefully designed to help you recall important facts, apply economic reasoning, and analyze policies related to rural growth. Perfect for exam revision and concept clarity, this mock test ensures thorough preparation for both school and board exams.

Attempt now and enhance your understanding of Rural Development – the heart of India’s economic progress!

1. Identify the incorrect statement from the following:

 
 
 
 

2. ‘Kudumbashree’ is a women-oriented community-based poverty reduction programme being implemented in:

 
 
 
 

3. Which of the following is a crucial area of improvement for rural banking?

 
 
 
 

4. “Co-operative marketing societies have faced a downfall in the recent years.” Identify which of the following was not a reason behind its downfall.

 
 
 
 

5. Non-farm areas of employment are:

 
 
 
 

6. Assertion (A): Rural development in India is of key significance.

Reason (R): Nearly two-third of population in India is dependent on agriculture.

 
 
 
 

7. Which of the following is false regarding NABARD?

 
 
 
 

8. Identify the incorrect statement from the following:

 
 
 
 

9. The Father of White Revolution in India is:

 
 
 
 

10. Identify the incorrect statement from the following:

 
 
 
 

11. Kavitha, a farmer in rural India, is a recipient of a government scheme named __________. This scheme helps her set up a bank account and provides

insurance, overdraft and other social security benefits.

 
 
 
 

12. Organic farming is beneficial because:

 
 
 
 

13. Statement 1: Change in cropping pattern is a form of diversification of farm activities.

Statement 2: Most agricultural activities are seasonal in nature.

 
 
 
 

14. Organic farming is needed because it:

 
 
 
 

15. Fish production from inland sources contributes about ___________ per cent to the total fish production and the balance ___________ per cent from main sector.

 
 
 
 

16. White revolution is associated with:

 
 
 
 

17. A process that involves the assembling, storage, processing, transportation, packaging, grading and distribution of different agricultural commodities across the country is known as _____________.

 
 
 
 

18. Diversification in agriculture activities means finding alternate employment in:

 
 
 
 

19. Observe the given image carefully and identify the organisation/scheme related with given logo from alternatives given below.

 
 
 
 

20. Statement 1: The SHGs promote thrift in small proportions by a minimum contribution from each member.

Statement 2: From the pooled money, credit is given to the needy members to be repayable in small instalments at reasonable interest rates.

 
 
 
 

21. Father of Green Revolution in India is:

 
 
 
 

22. Which of the following is not a non-institutional source of credit in India?

 
 
 
 

23. __________ is the branch of agriculture deals with breeding, rearing and caring of farm animals.

 
 
 
 

24. “In order to reduce over-dependence on agriculture sector, it is necessary to opt for diversification.” With reference to the government, diversification includes:

(i) Change in cropping patten

(ii) Shift of workforce from agriculture to allied activities

(iii) Shift of workforce from agriculture to nonagriculture sector

Alternatives:

 
 
 
 

25. Following are the major producers of marine products in India except:

 
 
 
 

26. Name the state which is held as a success story in the efficient implementation of milk cooperatives.

 
 
 
 

27. Observe the given image carefully and identify the diversified rural activity from the alternatives given below.

 
 
 
 

28. Assertion (A): In 1982, NABARD was set up.

Reason (R): NABARD helped improvement in institutional credit to satisfy rural needs.

 
 
 
 

29. Assertion (A): In 1982, India adopted social banking approach.

Reason (R): Moneylenders were charging high rate of interest from poor people and manipulate their account.

 
 
 
 

30. Statement 1: Prior to independence, farmers, while selling their produce to traders, suffered from faulty weighing and manipulation of accounts.

Statement 2: Farmers who did not have the required information of prices prevailing in markets were often forced to sell their produce at low prices.

 
 
 
 

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